Infamous Swing High
Over the evening Bitcoin reacted positively off a 9500 support, a level it broke out from a few days ago. If you follow me on twitter , I mentioned that Bitcoin was potentially developing a larger pattern given the way it was selling into support over the weekend on low . On the chart below I highlight the price action and current resistance and support levels.
Price is approaching resistance for a third time in five trading sessions while posting higher lows. Yes, that is . Right now we may have an developing. The measured target would be approximately 10,766, slightly above resistance.
A weekly, not daily close above resistance would potentially result in further gains. However, not shown on yet is the possibly for a divergence when and if Bitcoin breaks out. Historically, Bitcoin loves to trap bulls on a swing highs in combination with daily divergence. Just take a look at the 2016-2017 bull market.
Do not forget the resistance above. It's nearly 9 months of resistance. With that said, in the short term Bitcoin is and currently consolidating into a continuation pattern. I am currently long in spot and plan on adding on leveraged longs. The plan is to sell at resistance as I do not favor the bulls continuing to press higher beyond 11,000. Bias: Bullish.
Have a great day and talk to you all later this afternoon. Happy trading!